As Bitcoin struggles around the $20,000 level, cryptocurrency consultant at social trading and multi-asset brokerage exchange eToro, Glen Goodman, has said the asset might be approaching its bottom before rallying again.
Speaking during an interview with Bloomberg on July 13, Goodman stated that the current negative headlines, mainly from mainstream media platforms suggesting that Bitcoin is ‘dead’ are an indicator the market is nearing its bottom.
However, the consultant stated that investors should not necessarily expect an immediate rally by nearing the bottom.
“When you start seeing headlines in newspapers that say Bitcoin is dead, the crypto market is finished, you can infer that might mean we are near the bottom. It doesn’t necessarily mean we’re right out the bottom now, but we are near the bottom, then we go to the top,” said Goodman.
Bitcoin’s latest trend is not new
According to Goodman, the current Bitcoin price movement is not new and has mirrored the assets’ historical rallying trend before correcting.
He added that the market meltdown might be due to a lack of interest by retail investors. Goodman pointed out most retail investors were involved in the previous crypto bull run at the wrong time without considering any future price correction and ended up making losses.
His sentiment comes as Bitcoin briefly traded above $20,000 on July 14. However, by press time, the asset was valued at $19,749, dropping by less than 1% in the last 24 hours.
Crypto market crash
Notably, Bitcoin and the general cryptocurrency market took a hit after the release of U.S. inflation figures that soared to 9.1%. As reported by Finbold, Bitcoin wiped out about $15 billion in market capitalization within ten minutes after the release of the CPI report.
Worth mentioning is that the market is focused on Bitcoin’s recovery amid a high inflationary environment, with the asset’s price movement increasingly correlating with the equities.
Furthermore, the focus on Bitcoin is heightened by the growing regulatory scrutiny that has resulted in most jurisdictions proposing new strict laws.